OCBC Balance Transfer is not about transferring outstanding balances from your cards or lines of credit held with other banks to an OCBC card or credit line to reduce interest charges. It is about utilising the unused credit balance available on your OCBC card or EasiCredit account to cash.How does this benefit you? You won’t have to apply for a separate loan and bear a heavy interest burden. Simply convert the credit limit on your existing OCBC loan accounts to cash. This way, you can save on interest payments. You can even transfer the unused credit balance to another card or account that you hold with a bank in Singapore as long as it is Singapore-dollar denominated.
You’ll have to pay a one-time processing fee starting from 1.8% on this interest-free loan. The tenure for this loan can go up to 1 year. You could pay as little as 3% of the outstanding per month and roll the debt over. The following section will walk you through the features and benefits of this credit facility in detail.
The following are some of the special features of this loan:
Maximum Transfer Amount: In general, the transfer amount can’t exceed the credit limit available on your OCBC card or EasiCredit account that will be debited. However, in case the transfer amount, interest charges, and fees exceed the approved credit limit on your relevant OCBC loan account, you’ll be charged interest at the prevailing rate on the excess balance.
Minimum Transfer Request: OCBC may specify a particular minimum transfer amount for this facility. Applications for loan amounts lower than this, may be rejected.
Economical Interest Charges: You may not have to pay through the nose when you apply for this loan. That’s because you can have an interest-free borrowing. The effective interest rate could be as low as 5.2% p.a.
Flexible Monthly Repayment: With this loan option, there is no need to make a fixed monthly repayment. You can pay as little as 3% of the outstanding balances by the due date, subject to a minimum of S$50. That means that you can roll the debt over multiple times, without settling the balance in full, and continue to enjoy the benefits of borrowing.
Multiple Repayment Period Options: Depending on your preference and financial objectives, you could choose a loan tenure from 3 available options. The tenure options available are 3 months, 6 months, and 1 year.
Track Your Monthly Transactions With Ease: Check and be in charge of all your monthly transactions in relation to this loan account with the help of monthly statements of account. The bank will send you such statements every month.
If you apply for this OCBC credit facility by 31 December 2018, you may be eligible for cashback up to S$320, subject to conditions. Depending on the size of the principal loan amount approved, you’ll get cashback at the following rates:
|Loan Amount||Cashback Amount|
|S$8,000 and above but below S$16,000||S$80|
|S$16,000 and above but below S$24,000||S$160|
|S$24,000 and above but below S$32,000||S$240|
|Greater than or equal to S$32,000||S$320|
Here are some things that you should know about this promotion:
You’ll be charged interest on the loan at the following rates, depending on the tenure of your choice:
|Tenure||Nominal Interest Rate||Effective Interest Rate|
|3 months||0% p.a.||7.38% p.a.|
|6 months||0% p.a.||5.34% p.a.|
|1 year||0% p.a.||5.20% p.a.|
If you feel that the table is not enough to help you understand how much you’re really saving vis-à-vis a credit card (say), hopefully the following example would help.
Let us assume that you have an outstanding debt of S$15,000 on a credit card. For argument’s sake, let us also assume that the lender charges a rate of 26% p.a. on the card and no processing fee.
Then, your interest expenses for 1 year on the card would be S$3,900 (=26/100x15,000).
Now, let us assume that you have applied for an OCBC Balance Transfer loan for an equal amount. Let us assume that you have chosen the 1-year repayment period. The processing fee for this tenure is 4.5%. There is no flat interest rate. Therefore, your interest expense for 1 year on this loan would be S$675 (=4.5/100x15,000).
So, you’re basically saving S$3,225 or almost 83% [=(3,900-675)/3900x100%] in a year.
[Disclaimer: The numbers used in the example above are for illustrative purposes only. They may bear no resemblance to actual values and results.]
You’ll be charged a one-time processing fee on this loan, depending on the loan tenure of your choice. The rates will be as follows:
|Tenure||3 months||6 months||1 year|
If you’re looking for loans that don’t charge processing fees, check this out. You may have to deal with other legal charges and administrative fees on this loan as well.
Before you submit your application, you should definitely give the following points a serious thought:
You’ll be considered to be eligible for this loan if you satisfy the following conditions:
Learn more about the supporting documents and the general eligibility criteria for OCBC personal loans.
The process is quite convenient. You could use any one of the following modes to submit your application:
There’s a popular saying. You have to invest money to make money. Now whether you agree with us or not, we’re certain that you would agree that lack of funds can purloin opportunities from you. They can even hold you back.
If you think that instant funds could help you surmount a financial obstacle, you may want to consider this loan. You might find its affordability and flexibility extremely useful.